words‚ an accountant’s actions are measured against those of a “reasonable accountant” in similar circumstances. The development of GAAPs‚ GAASs‚ and other uniform accounting standards has generally made this a national standard. An accountant who does not comply with GAASs when conducting an audit and thereby fails to uncover a fraud or embezzlement by an employee of the company being audited can be sued for damages arising from this negligence. There are three major rules of liability that a
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wife and children‚ was a company created in 1998 by Enron ’s CFO‚ Andrew Fastow‚ to buy Enron ’s poorly performing stocks and stakes and bolster Enron ’s financial statements. Fastow proposed in October 1999 to Enron ’s finance Board the creation of LJM2 Co-Investment L.P. Fastow would act as general director of a much larger private equity fund that would be funded with $200 million of institutional funds. The question of Fastow’s dual role as Enron ’s CFO and LJM2 ’s general director was not viewed
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Effects of Barings Collapse on the Banking Industry The uncovered loss of GBP 830 million led to a liquidity crisis for the Barings Bank ‚ the collapse of the bank‚ which shocked all people‚ not only the financial world. Over the weekend of February 25 and 26‚ the management of Barings tried to arrange for a bailout by the Bank of England. Several investment banks gathered to discuss the possibility of raising enough private money to recapitalize Barings before the Tokyo market reopened on Monday
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Does Freedom Need To Be Won More Than Once? “Freedom is never really won‚ you earn it and win it in every generation.” this quote by Coretta Scott King‚ a civil rights activist‚ shows us her opinion on freedom. What’s yours? Do you believe that freedom was won a long time ago‚ or do you think it is won every generation? I feel that it is earned every generation. Each new generation needs to prove that they are worthy of freedom‚ and that they can handle it. The early settlers of Great Britain’s
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The Enron Kaiwing Ho Ethics‚ Governance & Accountability BU.135.301.U2.FA12 Professor Crain November 21‚ 2012 Enron Since Enron Corporation has been bankrupt there were 20‚000 employees lost their jobs‚ medical insurance and average severance pay was only $4500. However‚ the top executives were paid bonuses totaling $55 million. In 2001‚ employees lost $1.2 billion in retirement funds and retirees lost $2 billion in pension funds. Yet‚ Enron’s top executives cashed in $116 million
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According to Edexcel 2004‚ the regulation of advertising industry are based on the media used‚ the nature of the products or service advertised and the nature of the business of the advertiser. 1. The media Used‚ because of the different characteristics of the various media from which an advertiser can choose‚ different levels of regulation. Television is the most heavily regulated medium . 2. The nature of the products or servive advertised‚ varying levels of regulation may exist‚ for example harmful
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For the past few years‚ this topic is in huge debate that whether financial markets should regulate or governments should take control over them by making strict regulations. When the word regulation comes‚ its seems very ugly to many people‚ especially when it is associated to managers and stockholders‚ they always see rules or regulations as burden on them imposed by government to damage their efficiency and innovation. But according to me if the financial markets and institutions are controlled
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The Need For Responsible Energy Usage Fossil fuels: the world ’s primary energy source‚ a precious resource capable of powering both vehicles and economies. This nonrenewable fuel source is created by dead animal and plant matter that has become fossilized through the application of pressure and heat in Earth ’s crust over millions of years. Once thought to be in abundance‚ this depleting fuel source has both consumers and producers worried about its future‚ as most modern transportation technology
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Enron Corporation (former NYSE ticker symbol ENE) was an American energy‚ commodities‚ and services company based in Houston‚ Texas. Before its bankruptcy on December 2‚ 2001‚ Enron employed approximately 20‚000 staff and was one of the world’s major electricity‚ natural gas‚ communications‚ and pulp and paper companies‚ with claimed revenues of nearly $101 billion during 2000.[1] Fortune named Enron "America’s Most Innovative Company" for six consecutive years. At the end of 2001‚ it was revealed
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Ethics Enron Case 1. Using the options market more for gambling purposes to cover loss rather than insurance. The culture was if one of their employees was making a lot of money they didn’t ask questions they didn’t look too deep into where the money was going they eventually gave these people more money to spend and use‚ what they realized later on was that that employee wasn’t very good. They were just lucky one time. They made some losses and had to get that loss back so they put more money
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